Business Licenses in Malaysia: Types, Costs and Online Application

Malaysia continues to position itself as a strategic gateway for international business in Southeast Asia. Given its investor-favorable policies, favorable employment landscape, and outstanding infrastructure, many entrepreneurs prefer Malaysia as their business destination. But before you start a company here in Malaysia, registering the right business licenses in Malaysia is a very critical step.

In this guide, we break down the essentials: what licenses are required, the business license cost in Malaysia, how to obtain an online business license in Malaysia, and the actual price of a business license in Malaysia depending on your sector. For those seeking professional support, Offshore Company Corp partners with local legal and licensing experts to ensure compliance with Malaysian regulations.

Why Do You Need a Business License in Malaysia?

A business license legitimizes your operations, ensuring you comply with local laws, safety standards, and industry regulations. Operating without one can lead to fines, closure, or legal action. Beyond compliance, having a license:

• Builds trust with customers and partners.
• Grants access to business loans and government grants.
• Protects your brand’s reputation.

Malaysia’s licensing system varies by industry, location, and business size, so identifying the right type of business license is the first step to success.

Benefits of Business License in Malaysia

Types of Business Licenses in Malaysia

Before you register your business, you should determine what type of business license you’ll need in Malaysia. These can generally be classified into three categories:

1. General Licenses

These are mandatory for nearly every business regardless of the industry:

• Company or Business Registration – Register with the Companies Commission of Malaysia (SSM).
• Business Premise License – Issued by the local city council or municipal authority (often differs according to each Majlis Daerah).
• Signboard License – This is for physical businesses with signage.
• Tax Registration – You must register with the Inland Revenue Board (LHDN).
• Employee-Related Registrations – If you hire staff, you must register with SOCSO, EPF, and EIS.

2. Sector/Industry-Specific Licenses

These are required depending on your business activity:

• Food and Beverage Businesses – Need health and hygiene permits from the Ministry of Health and local councils.
• Education and Training Providers – Require licenses from the Ministry of Education or HRDF.
• Tourism Operators – Must obtain licensing from the Ministry of Tourism, Arts and Culture.
• Manufacturing Businesses – May need approval from MIDA or MITI.

3 Types of Business Licenses in Malaysia

3. Special Licenses and Permits

These are unique to certain business models:

• Import/Export Permits
• Halal Certification (for food and product businesses targeting Muslim consumers)
• E-commerce Platform Approval (unless you open a marketplace or operate with an intermediary payment element)
• Petroleum or Telecommunications Licenses

It’s important to match your licensing with your specific industry to avoid delays or penalties.

Applying for an Online Business License in Malaysia

Gone are the days when you needed to queue at government offices for every license application. With Malaysia’s push towards digital governance, applying for an online business license in Malaysia has become more streamlined and user-friendly.

Key Online Platforms

1. SSM’s MyCoID Portal – For online company incorporation.
2. MalaysiaBiz Portal (malaysiabiz.gov.my) – One-stop platform for various business applications.
3. DBKL, MBPJ, MBSA Websites – For premise and signage licenses, depending on your location.
4. MITI’s ePermit System – For companies involved in import/export or manufacturing.

Steps to Apply Online

1. Register your company online with SSM.
2. Identify the licenses you need based on your business type and location.
3. Access the relevant portal (e.g., DBKL for Kuala Lumpur-based businesses).
4. Submit your application with the required documents: tenancy agreement, floor plan, business proposal, etc.
5. Pay the fees online and track the application status.
6. Await approval, which typically takes 3–14 working days, depending on complexity.

Online submission is efficient and transparent, especially for startups that want to move fast.

Guide to applying for an Online Business License in Malaysia

Business License Cost in Malaysia

What influences the price of a business license in Malaysia? First, your business structure plays a role—whether you’re registering as a sole proprietorship, partnership, or private limited company, each comes with its own set of requirements. Then, there’s your business location—different municipal councils may have varying licensing conditions and administrative processes.

Another major factor is the type of license required. Businesses operating in regulated industries such as food and beverage, education, import/export, or manufacturing typically need to obtain additional sector-specific permits or undergo inspections before receiving approval.

Other considerations include:

• Premise and signboard approvals for businesses with physical locations
• Health and safety permits for industries dealing with food or public services
• Special certifications such as Halal for food producers, or compliance permits for import/export
• Digital submissions through official portals, which often reduce processing time and administrative burden

While there is no universal rate, it’s advisable to set aside a reasonable budget for initial applications, possible supporting documents, and future renewals, as many licenses require annual or periodic validation.

Tips to Reduce Your Business License Cost in Malaysia

While you can’t completely avoid licensing fees, here are some ways to manage and reduce the business license cost in Malaysia:

1. Start Small – Begin with a basic license and scale up as your business grows.
2. Choose Low-Cost Jurisdictions – Licensing costs may be lower in smaller towns compared to big cities like Kuala Lumpur or Johor Bahru.
3. Bundle Services – Many corporate service providers offer licensing, company incorporation, and tax registration as a package at a discounted rate.
4. Go Digital – Use the online business license Malaysia portals to avoid middlemen or unnecessary agency fees.

Save on business license costs in Malaysia

Common Challenges and How to Overcome Them

Navigating the licensing process in Malaysia can feel overwhelming at first, especially for foreign entrepreneurs. Here are some common roadblocks and how to tackle them:

Challenge	Solution
Unclear license requirements	Consult with experts or legal professionals.
Incomplete documentation	Prepare a checklist in advance or work with a service provider.
Location-based regulation variances	Check with local councils for specific rules.
Forgetting renewals	Set calendar reminders or automate through professional services.

Working with a knowledgeable partner like Offshore Company Corp can significantly reduce these risks. With extensive experience in Malaysia’s regulatory landscape, they ensure your licensing process is smooth and compliant.

Conclusion: Secure Your Business License in Malaysia with Confidence

Every entrepreneur must understand the kinds and pricing of business licenses in Malaysia as well as the process for applying for an operation in various jurisdictions. Whether you are a local start-up or foreign investors, compliance starts with applying for license and support can change everything in between.

Instead of navigating the maze alone, let Offshore Company Corp handle the details. With a proven track record, digital know-how, and deep regulatory insight, our team helps businesses operate seamlessly and legally in Malaysia.

Contact Offshore Company Corp today to get started with your business licensing journey.